Why did PayPal stock drop today?

The company issued a weak quarter and softer 2026 profit outlook, flagging margin and EPS pressure. The board also removed CEO Alex Chriss and named Enrique Lores, adding leadership uncertainty. Shares fell 20.31% to 41.70 USD, touching a 52-week low at 41.43. A 6 billion USD buyback did not offset execution risk.

What does the Enrique Lores PayPal move signal?

It signals a reset. We expect near-term priorities to include clearer pricing strategy, sharper product focus across PayPal, Braintree, and Venmo, and firm margin targets. The transition starts on 1 March. Early updates and capital allocation discipline will shape sentiment and determine how quickly trust in PayPal stock recovers.

Is PYPL earnings guidance the main issue now?

Yes. The outlook points to margin pressure and slower EPS growth into 2026. Investors need a credible path to stable transaction margins and stronger free cash flow. Watch the 5 May 2026 PYPL earnings call for concrete targets on operating margin, buyback pacing, and product mix. Without clarity, the discount can persist.

How did HP share prices react to the PayPal CEO change?

HP Inc. fell 4.09% to 19.00 USD after Enrique Lores was tapped to lead PayPal, reflecting succession uncertainty. The move weighed on both stocks on the day. For German investors, we think it is wise to wait for leadership updates from both companies before making portfolio changes.

Global Market Insights

PYPL Stock Today, February 04: CEO Ousted as Weak Guide Sinks Shares

ByDanny Kontos February 4, 2026February 4, 2026

PayPal stock plunged more than 20% today after weak quarterly results and a softer 2026 profit outlook. The board fired CEO Alex Chriss and named HP’s Enrique Lores to lead from 1 March. Nasdaq: PYPL closed near 41.70 USD, hitting a new 52-week low at 41.43. A planned 6 billion USD buyback did not calm fears about margin pressure and slower EPS growth. For investors in Germany, the move raises execution risk and puts leadership credibility back in focus. HP Inc. (HPQ) also fell on the abrupt transition. We explain what matters next.